Business Cycle and Stability of China’s Financial and Monetary System

50 Pages Posted: 19 Apr 2018

See all articles by William Wang

William Wang

Universidad Complutense de Madrid (UCM)

ANTONIO VEGAS GARCÍA

BBVA Research – Ciudad BBVA

Date Written: April 1, 2017

Abstract

The importance of China’s economy and the instability of China’s financial system are in the spotlight recently. This paper uses Austrian Business Cycle Theory to gauge the potential risks of China’s economy. The approach of this paper is a sector analysis, focusing on China’s monetary and financial system, shipping industry, and real estate industry, especially the state-owned enterprises in those sectors. We conclude that China’s central banking system is hurting China’s economy and we also propose reforms to overhaul the system, according to the perspective of praxeology and Austrian School Economics.

Keywords: Austrian Business Cycle Theory, China’s Banking System, China’s Economy

JEL Classification: B53, D8, E310, E32, E52, H12, N15, N27, N45, N65, O53, P11, R3, R4, Y10

Suggested Citation

Wang, William Hongsong and GARCÍA, ANTONIO VEGAS, Business Cycle and Stability of China’s Financial and Monetary System (April 1, 2017). European Journal of Political Economy, Vol. XIV, No. 1, 2017, Available at SSRN: https://ssrn.com/abstract=3165536

William Hongsong Wang (Contact Author)

Universidad Complutense de Madrid (UCM) ( email )

Carretera de Humera s/n
Madrid, Madrid 28223
Spain

ANTONIO VEGAS GARCÍA

BBVA Research – Ciudad BBVA ( email )

C/ Azul,4. Edificio La Vela. Planta 4
Madrid, 28050
Spain

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